A number of cities in northern regions have seen remarkable year-on-year increase in house prices and the biggest increase since the Housing Market Peak in 2007, all while house prices in the South have stagnated in the same period.
Property portal Zoopla have analysed the year-on-year inflation of house prices in cities across the UK and compared the figures to when the housing market peaked in 2007. Overall, UK cities saw an average year-on-year inflation of 1.9%. The results varied in each city and each location saw its house prices develop at different rates. This reflected the relative strength of the local economy, as well as the demand, and affordability of each city.
Leicester saw the biggest inflation at a 4.8% year-on-year increase in house prices. In comparison, Aberdeen saw a decrease of -4.0%. As expected, cities in the North of England performed well - Liverpool and Manchester were some of the top performers of the cities studied, where they saw a year-on-year increase of 4.6% and 4.5%, respectively. The North of England also performed well when compared to the house prices in 2007, when the housing market peaked. House prices in Manchester are 22% higher than they were back in 2007, which was the same as the UK as a whole. Sheffield and Leeds also saw their house prices surpass the levels they were at in 2007, with both cities seeing an increase of 11%.
In contrast, the house prices in London seemed to struggle somewhat. Although London and other southern cities saw house prices grow at an impressive 56% since 2007, the region has seen its house prices stagnate for the past four years. London itself also saw the number of properties being purchased drastically decrease in late 2014 and have only seen modest improvements ever since. In addition to this, Zoopla reported that 9.7% of their listings in London have had their prices reduced in the last year. This is further evidence that investors should be looking up north for their next investment.
It wasn’t just house prices that performed well in the North of England, the region has also seen impressive rental growth as well. According to data from HomeLet, the North West saw the strongest growth with a year-on-year increase of 4.40%. The North East also saw an impressive increase of 3.1%.
It’s no secret that the North of England has seen its potential being realised over the past decade and as a result of this, it has been a firm favourite amongst buy-to-let investors. It’s clear to see that the north will continue to provide investors with better value for money than its southern counterpart and there’s no sign of its popularity wavering any time soon.
Are you looking to make your next buy-to-let investment? Take a look at this fantastic investment opportunity in Greater Manchester!